All of these improved balance sheet ratios in the more simplified business will help us in our discussions with the rating agencies and hopefully allow us to regain our investment grade rating with both Moody’s and Fitch in the near term. As we announced earlier this month, we had exited the 18 assets DRA/CLP Office joint venture. This was our largest remaining joint venture and was the significant step in simplifying our business in shifting our assets to multi-family. This joint venture was highly leveraged and we were able to renew $111 million of secured financing that was scheduled to mature in 2014. We planned to transition management of these properties to a third-party over the next 60 to 90 days, which will allow us the opportunity to further simplify our internal structure. Following this transaction, multifamily assets now represent approximately 86% of our net operating income bringing us closer to our target mix of 90% multifamily and 10% commercial. We have additional commercial assets being marketed for sale that I will discuss at the end of the call.
Now Reynolds will provide more details on our operating performance and other activities during the quarter. Reynolds?
Thanks Tom. FFO for the second quarter was $0.32 per share consistent with the year ago and up from $0.30 per share in the first quarter. Our second quarter same property net operating income increased 7.3% and revenue increased 4.9% versus the prior year. Multifamily same-property physical occupancy was 96% at the end of the quarter. New lease rates were up 3.9% and renewal rates were up 6.6% in the second quarter for a blended growth rate of 5.1%. July new lease rates are up 3.3% today. Renewal letters are going out at 6.5% consistent with the second quarter. Average revenue per occupied unit reached $928 during the second quarter of 1.9% sequentially and up 5.8% from the second quarter of 2011. Revenue per occupied unit is above our prior peak in all of our markets except for Phoenix, which is less than 1% below the prior peak. Rents as a percent of income were 15.9% for the quarter, 400 basis points below our prior peak of approximately 20% in 2008.Read the rest of this transcript for free on seekingalpha.com